1. A company issues 5-year 9% bonds with a par value of $250,000 on January 1 at a price of $260,139, when the market interest rate was 8%. The bonds pay interest semi-annually. The amount of each semi-annual interest payment is:

2. A company issues 6% bonds with a face value of $80,000 at par on January 1. The market rate on the issue date was 5%. The bonds pay interest semi-annually on January 1 and July 1. The cash paid on July 1 to bondholders is: